EPC s Gold HSA High Deductible Health Plan (HDHP) & Health Savings Account (HSA)
What is an HSA? A Health Savings Account, or HSA, is a tax-advantaged savings account that's available to people whose only health care coverage is provided through a qualified high-deductible health plan. Since the deductible or amount you must pay out of pocket before these plans begin to cover benefits is high, establishing an HSA to self-fund your out-of-pocket care expenses may help you save money. 2
Who Is Eligible? Individuals covered under the High Deductible Health Plan: Can NOT be covered by any other health plan that is not a qualified high- deductible plan Can NOT be enrolled in Medicare Can NOT be claimed as a dependent on another person s tax return 3
THE BASICS ON HEALTH SAVINGS ACCOUNTS It s your money. You choose how to pay for care services. It s portable. It goes where you go, even if you change jobs. Account funds roll over from year to year. You can pay for an exceptional range of health care services and products. That includes services such as dental and vision care that may not be covered under your health plan. You get triple-tax savings. HSA contributions and earnings are tax exempt as long as they are used for qualified medical services. Once you reach a $500 account balance, you can invest in a wide range of mutual funds for short- or long-term growth potential. It s convenient. You access and track all of your health care spending online at your Highmark member website. Your account is offered through a trusted industry leader, Bank of America, who serves as the custodian. 4
Preferred Custodian Review Let s talk about the HSA Custodian Highmark s preferred Custodian Advantages of choosing Bank of America: Bank of America Authorization of pre-tax payroll deductions into your account Integration of CDHP and HSA Investment opportunity for over 20 Mutual Fund options Must reach a $500 balance in your account prior to purchasing funds When an employee invests, the responsibility is solely on them. Whether there are gains from the market or losses, it s no different than someone investing on their own. As the taxpayer, the HSA account holder is solely responsible for the money in their account and how it is used Maintenance fee of $3.50 per month covers all transactions and debit card 5
Contributions & Distributions Regulations determined & enforced by the Internal Revenue Service Contributions For 2014 contributions from all sources are limited to $3,300 Single Coverage $6,550 Family Coverage Catch-up contributions of $1,000 allowed for members over age 55 in 2014 Distributions Intended use is for qualified medical expenses as defined by section 213(d) of the Internal Revenue Code Same Qualified Medical Expenses List for a Flexible Spending Account If money from the HSA is used for qualified medical expenses, then the money is spent tax-free Unqualified distributions are subject to income tax and 20% penalty 6
Highmark HSA How does it work? www.highmarkbcbs.com
Health Savings Account Options Your Health Savings Account will be established automatically upon enrollment in the HDHP Can be managed online through the Highmark Blue Cross Blue Shield website Must go to website and accept terms and conditions Different Methods of Contribution Payroll Contribution Personal Check ACH Debit Different Methods of Claims Submission Debit Card All HSA participants will receive a debit card tied to account Additional cards can be requested for family members Claim-by-Claim Authorization Different Methods of Reimbursement Debit Card Direct Payment to Provider Direct Deposit Check to Member 8
Website Login and Registration Enter User ID & Password in the Log In box, or For new registrants click Register Now New Registrants will receive a PIN to allow complete access Getting started is easy! 9
To Open an HSA Click on the link Start a Health Savings Account and Save 10
Please wait 7-10 business days for your HSA to be open Once your HSA is open you will automatically receive: 1) A Welcome Kit 2) A Debit Card 11
Questions?? Call (866) 472-0928